Overview
- On Monday, August 31, LG Energy Solution signed a binding 10‑year contract to buy about 8,000 metric tonnes of battery‑grade lithium carbonate per year from Smackover Lithium.
- The lithium will come from the South West Arkansas project and use direct lithium extraction and purification, with companies targeting a 2026 construction start and first commercial production in 2029.
- Standard Lithium and partner Equinor say the agreement, combined with an earlier Trafigura deal, commits roughly 80–90% of the initial phase offtake needed to pursue project financing and a Final Investment Decision.
- LG framed the contract as a way to build a fully integrated U.S. supply chain that meets non‑PFE sourcing rules and supports LFP battery production at its existing American plants.
- If financing and permits follow, the project could expand domestic lithium output while using DLE to selectively extract lithium from brine, which companies say reduces land use compared with conventional evaporation or hard‑rock mining.